Independence in bid for Jabiru

Independence Group has mounted a $532 million friendly takeover bid for fellow West Australian base metals miner
Jabiru Metals
in another sign of accelerating consolidation among junior resources companies.

Independence
– which owns the Long nickel mine near Kambalda as well as a 30 per cent interest in the Tropicana gold project, east of Kalgoorlie – last night offered one of its shares for every eight Jabiru shares, valuing Jabiru at 96.1¢ a share.

At a 44.5 per cent premium to its closing share price on Tuesday, the bid has been unanimously recommended by the Jabiru board in the absence of a superior proposal.

But reducing the prospect of a counter-bidder emerging, Independence has purchased a 10.48 per cent interest in Jabiru from major shareholder Metals X and secured another 9.48 per cent in pre-bid acceptances.

Completion of the takeover will deliver Independence the low-cost Jaguar zinc and copper mine, 60 kilometres north of Leonora, and the Stockman polymetallic project in the Victorian Alps, creating a $1.5 billion diversified mining house.

“It’s very good deal for Independence in terms of its future growth and revenue generation," Independence managing director Chris Bonwick said.

“One of our goals is to grow another very good or great Australian multi-commodity mining company. We floated back in 2002 with that in mind."

The takeover bid is sure to spark speculation about Independence’s plans for its stake in Tropicana, which the company is developing in conjunction with gold major AngloGold Ashanti.